Japanese businesses should invest more in Africa, where investment opportunities and investment returns are among the highest in the world, African Development Bank President Dr. Akinwumi Adesina urged participants at the 8th Tokyo International Conference on African Development (TICAD8).
Adesina commended the Japanese government and the private sector for their strong support for Africa’s development.
He urged Japanese businesses to evaluate Africa’s investment opportunities based on facts and evidence, not opinion.
The head of the bank’s group said: “In 2020, Moody’s Analytics conducted a 10-year cumulative assessment of global infrastructure debt default rates by region. Africa has proven to be the region with the second lowest aggregate default rate after the Middle East. That is yet another proof that infrastructure in Africa is strong, safe and profitable.
The leaders of 20 African countries are participating in the summit, which will be held in Tunis, the capital of Tunisia, from August 27 to 28.
Japanese officials and business leaders as well as heads of international organizations are participating in the conference.
Speaking via video link, Japanese Prime Minister Fumio Kishida said Japan had achieved its goal of contributing $20 billion to Africa in the private sector, a goal set at the 2019 TICAD7, and Kishida announced new commitments. Japan will provide financial assistance of up to 5 billion dollars with the African Development Bank to improve the lives of African people, he said.
Senegalese President Macky Sall said Japanese corporations “have the technological and financial capacity needed to create partnerships in Africa in sectors such as infrastructure, transport and housing”.
United Nations Deputy Secretary General Amina J. Muhammad A place where we can collectively respond to these challenges.”
African Union Commission Chairman Musa Faki Mahamat praised Japan for its efforts to increase the capacity of Africans through education and training. He praised the Japanese initiative that trained more than 1000 African youths in nutrition.
The head of the African Development Bank has said that African countries need greater financial capacity to deal with the impact of Covid-19, climate change and Russia’s war in Ukraine.
“It is time to strongly support the Africa Adaptation Accelerator Program to mobilize $25 billion for Africa’s climate adaptation, especially as we look forward to COP-27 in Egypt,” Adesina said.
He said that the Bank’s African Emergency Food Production Facility, which started operations in May 2022, is providing 1.13 billion dollars to 24 countries for emergency food production of an expected 1.5 billion dollars. In order to prevent the possible food and fertilizer crisis caused by the war in Ukraine, the African Development Bank Fast forward to 2022.
Adesina thanked Japan for its contribution to the institution. “I am very pleased that the Japan International Cooperation Agency (JICA) has provided additional cooperation support of $518 million to support the institute.”
At a forum for the business community, Adesina named two areas of Japan’s relationship with Africa that they hope to see: bilateral trade and investment. He said Africa accounts for only 0.003% of Japan’s $2 trillion in global foreign direct investment.
Adesina emphasized that Japanese companies that were brave enough to invest in Africa were prosperous. In the year He cited as an example Toyota Tsusho’s investment in South African auto factories, which will generate $8.5 billion in revenue by March 2022. Others include Komatsu and Mitsubishi Heavy Industries.
Referring to Africa’s youth, entrepreneurship and innovation, Adesina said, “Africa has a vibrant fintech ecosystem that is leading the continent’s digital revolution with great potential to lead the world. The continent is home to 576 fintech startups run by young people.
Adesina has named other important areas of investment, including the production of lithium batteries that power electric vehicles.
TICAD8 included the signing ceremony of 91 Memorandums of Understanding between the Japanese government and business organizations with African corporations or governments.
The agreement included projects to develop manpower technical skills and green hydrogen, water purification and geothermal solutions in all five African regions.
Adesina held bilateral talks with Japan International Cooperation Agency (JICA) President Tanaka Akihito and Bank of Japan International Cooperation Governor Nobumitu Hayashi. They also participated in a bilateral meeting with leaders of the Kidanren Japan Economic Organization, which represents business and industry and regional associations. The meetings focused on the need for greater cooperation in investment, including joint financing for key projects, trade and opportunities for Japan’s private sector. The discussions were explored on the 16thTh Replenishment of African Development Fund, African Development Bank Group Concessional Loan Window.
Held every three years, TICAD is organized by the Government of Japan, the United Nations, the United Nations Development Programme, the African Union Commission and the World Bank.
